GE to invest US$50m in Greenko's wind venture

EMBARGOED UNTIL 07.00 10 October2011

Greenko Group PLC

("Greenko" or "the Group")

General Electric to invest US$50 million in Greenko's wind venture

Greenko, the Indian developer, owner and operator of clean energy projects, announces that a newly created Wind holding company, Greenko Wind Project Private Limited ("GWPP"), which is a subsidiary of Greenko, has today entered into a conditional share subscription agreement with a division of GE Energy Financial Services("GE"), which is a subsidiary unit of General Electric (NYSE: GE), whereby GE has agreed to invest US$50 million to support the development of the initial 500MW out of Greenko's planned development of 1GW of Wind energy projects across India.

This follows the placing of 1st June 2011 with existing and new shareholders when Greenko raised US$80 million for the deployment of the Group's Wind strategy. GWPP expects to raise further equity and debt in due course to support this area of business.

Greenko strongly believes that the investment by GE will further enhance the Group's shareholder equity value and demonstrates the long term and complementary nature of the strategic partnership with GE. The Group will also benefit from GE Energy Financial Services' renewable energy investment expertise, demonstrated by building a US$6 billion portfolio of renewable energy investments worldwide. The investment expands GE's presence in India, which dates back to 1902 when they installed India's first hydropower plant.

Commenting on the deal with GE, Anil Chalamalasetty, CEOand MD of Greenko, said: "We are delighted to be deepening our existing strategic relationship with GE, a clear leader in the global energy market place. This announcement represents a further step in establishing Greenko as a leading energy provider in India."

Commenting on the deal, Raghuveer Kurada, managing director and leader of India at GE Energy Financial Services said: "This venture expands GE's presence in one of the world's fastest growing power markets with a local, proven renewable energy developer."

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Terms of the Investment

The investment by GE, which is conditional, inter alia, on the completion of a reorganisation of Greenko's Wind energy division and the commissioning of Greenko's Ratnagiri Wind energy project, will take the form of two tranches of US$25 million for equity shares and US$25 million for convertible preference shares in GWPP. The convertible preference shares will carry certain preferential rights including as to dividend and liquidation proceeds. If not converted earlier, the convertible preference shares will automatically convert into equity shares on a 1:1 basis on the fourth anniversary of the date on which GE makes its initial investment.

GE will also be entitled to participate in the event of any IPO of GWPP or any intermediate holding company. Greenko has negotiated the right to acquire half of GE's interest in GWPP prior to any IPO of GWPP. As an alternative, within a year from the expected date of any GWPP IPO, GE can sell its entire interest in GWPP to Greenko. In either case, in the absence of any other applicable benchmark, the purchase price will be calculated by reference to a mutually agreed internal rate of return and be payable in cash.

GE will also have the benefit of a shareholders' agreement relating to GWPP under which it will have certain minority protection rights, including the right to nominate directors to the GWPP board.

About GE Energy Financial Services

GE Energy Financial Services' experts invest globally with a long-term view, backed by the best of GE's technical know-how, financial strength and rigorous risk management, across the capital spectrum, in one of the world's most capital intensive industries, energy. GE Energy Financial Services helps its customers and GE grow through new investments, strong partnerships and optimization of its approximately $20 billion in assets. GE Energy Financial Services is based in Stamford, Connecticut. For more information, visit www.geenergyfinancialservices.com.

About GE

GE (NYSE: GE) is an advanced technology, services and finance company taking on the world's toughest challenges. Dedicated to innovation in energy, health, transportation and infrastructure, GE operates in more than 100 countries and employs about 300,000 people worldwide. For more information, visit the company's Web site at www.ge.com.

About Greenko

Greenko is a mainstream participant in the growing Indian energy industry and a market leading owner and operator of clean energy projects in India. The Group is building a de-risked portfolio of wind, hydro electric, natural gas and biomass assets within India and intends to increase the installed capacity it operates by winning concessions to develop new greenfield assets as well as making selective acquisitions which enhance shareholder value.

Greenko's portfolio is carefully planned and managed to ensure it offers investors diversification geographically and spreads risks across a number of projects which utilise varied environmental technologies. The Company's goal is to reach 1 GW of operational capacity by 2015. Current operational capacity is 182.6 MW, split between 104.3 MW of hydro, 41.5 MW of biomass and 36.8 MW of gas/liquid fuel. Greenko's portfolio, which includes projects in the development pipeline, currently stands at 1.63 GW.

With a core belief in sustainability both operationally and environmentally, Greenko endeavours to be a responsible business playing an important role in the community beyond its role in the power generation industry. The Company maintains a continuous involvement in localised projects and community programmes which centre on education, health and wellbeing, environmental stewardship and improving rural infrastructure.

Greenko Group plc was admitted to trading on the AIM market of the London Stock Exchange (LSE: GKO) in November 2007.